Dinar Harvest Bhd (DHB) ventures in property devdopment in Malaysia. DHB provides thefollowing information on 1 January 2021:RM1,275,000300,000 Ordinary Share Outstanding50,000 9% Preference SharesRetained EarningsDividend DistributableDividend Payable1,000,0001,113,500315,000127,500The following are transactions related to DHB’s equity throughout the year 2021:1. Paid in full the amount of cash dividend declared.2. Issued 75,000 ordinary shares declared as sharedividend in the previous year.3. Issued 120,000 ordinary shares at a market price of RM4.15 per share. The cost related tothe issuance were professional fees RM3,700 and stamp duties RM50.4. Declared cash dividend for the year 2021. The cash dividend for ordinary shares wasRM0.85 per share, payable in February 2022.The reported net profit for the year was RM888,990.REQUIRED:(Show all the working)(a) Prepare necessary journal entries to record the above transactions.(b) Prepare the Statement of Financial Position as at 31 December 2021, showing only theequity section.(c) If the company decides to declare a share dividend instead of cash, explain the effects onthe company's asset, liability and equity.

(a). Journal entries Date Account title and explanation Debit Credit 2021 1 Dividend…

REQUIRED: (Show all the working) (a) Prepare necessary journal entries to record the above transactions. (b) Prepare the Statement of Financial Position as at 31 December 2021, showing only the equity section. (c) If the company decides to declare a share dividend instead of cash, explain the effects on the company's asset, liability and equity.

REQUIRED: (Show all the working) (a) Prepare necessary journal entries to record the above transactions. (b) Prepare the Statement of Financial Position as at 31 December 2021, showing only the equity section. (c) If the company decides to declare a share dividend instead of cash, explain the effects on the company's asset, liability and equity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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